What Strategies Help Keep Up With Changes in Payroll Tax Legislation?

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    What Strategies Help Keep Up With Changes in Payroll Tax Legislation?

    Navigating the ever-evolving landscape of payroll tax legislation can be daunting, so we turned to the experts for their strategies. Featuring insights from CEOs and COOs, our seven-part series kicks off with adapting to legislation with agile systems and wraps up with the importance of subscribing to government tax newsletters. Discover how top professionals stay compliant and ahead of the curve in this critical aspect of business management.

    • Adapt to Legislation with Agile Systems
    • Track Changes with Tax Strategy Expert
    • Outsource to a PEO for Compliance
    • Stay Informed with Government Tax Bulletins
    • Network with Tax Experts for Real Estate
    • Leverage Legal Expertise for Tax Adaptability
    • Subscribe to Government Tax Newsletters

    Adapt to Legislation with Agile Systems

    Keeping up with frequent changes in payroll tax legislation is an integral part of my role at OneStop Northwest LLC, where I've dedicated over 15 years to ensuring our services, including payroll processing, remain compliant and efficient. A critical instance of this was when Seattle introduced the Employee Head Tax, which significantly impacted businesses with taxable gross incomes of $20 million or more. This required a rapid adjustment to our payroll systems and processes to ensure all our clients complied without facing penalties. We leveraged our partnerships, like those with Gusto, to update our software solutions swiftly, ensuring accurate tax calculations and filings.

    In another instance, the introduction of privacy laws such as GDPR and CCPA significantly impacted how we handle employee data within payroll processes. We prioritized updating our privacy policies and ensuring our systems were robust against potential data breaches. For this, we integrated Termageddon, which automatically updates privacy policies when laws change, into our service. These experiences underscore the critical need to stay agile and informed in the ever-evolving landscape of payroll legislation and data privacy, reinforcing our commitment to safeguarding our clients' compliance and security.

    Dylan Cleppe
    Dylan CleppeCo-Founder & CEO, OneStop Northwest LLC

    Track Changes with Tax Strategy Expert

    I run CoinLedger, a leading crypto-tax software. Believe me, staying on top of payroll tax legislation changes is vital for us. That's where Jordan Bass, our head of tax strategy, comes in—it's his job to keep us informed. Jordan dedicates his role to meticulously tracking every ripple in payroll tax legislation. He consults an array of authoritative sources, from the IRS's official announcements to in-depth analyses on tax law changes published on Tax Foundation and Bloomberg Tax. He also actively participates in tax professional forums and webinars to exchange insights with peers. All SaaS tax tools should adopt a rigorous approach to legislative updates as we do at CoinLedger; otherwise, scheduling monthly consultations with a CPA becomes an essential safeguard against compliance risks.

    David Kemmerer
    David KemmererCo-Founder and CEO, CoinLedger

    Outsource to a PEO for Compliance

    For a company our size, it's really tough. Our solution is to use a PEO. This allows us to pay employees that we have all over the United States. We are fully remote, so the idea of getting familiar with local payroll tax laws every time a new employee onboards is not sustainable. For the moment, PEOs are a solution that helps companies of our size stay out of the compliance muck.

    Trevor Ewen
    Trevor EwenCOO, QBench

    Stay Informed with Government Tax Bulletins

    We make it a point to regularly review updates from official government websites and tax bulletins. A specific instance that underscores its importance happened last year. A new amendment was introduced, affecting outdoor-gym-equipment businesses directly, altering how equipment depreciation impacted payroll taxes. By catching this early, we adjusted our filings accordingly, preventing what could have been a costly oversight. This practice of staying informed through official channels has become a cornerstone of our financial management strategy, ensuring we remain compliant while optimizing our operations.

    Lucas Riphagen
    Lucas RiphagenCo-owner, TriActiveUSA

    Network with Tax Experts for Real Estate

    As a real estate investor, I understand the significance of staying updated with the ever-changing payroll tax legislation. To effectively manage this, I maintain a network of industry professionals and tax experts who specialize in payroll tax legislation. Through regular communication and collaboration, I stay informed about the latest updates, amendments, and proposed changes. This network serves as a valuable resource to discuss and analyze the potential impact of new legislation on my real estate investments.

    I diligently follow reputable industry publications, tax newsletters, and online forums that provide insights into payroll tax legislation. These sources often publish timely articles, case studies, and expert opinions that help me understand the nuances of new regulations and their implications.

    One specific instance where staying updated with payroll tax legislation was critical was when a new tax incentive program was introduced to stimulate real estate development in certain areas. This program offered significant tax benefits, but it had specific eligibility requirements and compliance obligations. By closely monitoring legislative updates and attending a seminar dedicated to this program, I gained in-depth knowledge about its intricacies. This allowed me to identify eligible investment opportunities and structure my real estate projects in a way that maximized the benefits offered by the new legislation.

    Chris Mcguire
    Chris McguireReal Estate Investor, Real Estate Exam Ninja

    Leverage Legal Expertise for Tax Adaptability

    Navigating the ever-changing landscape of payroll tax legislation is a constant in my work as a Tax, Trust, and Estate lawyer. My background, particularly the expertise I've honed through creating Brilliant Law Weekly Tax Digest, positions me well to tackle these shifts, blending legal insights with practical tax strategies.

    One vivid instance highlighting the significance of staying updated occurred during the enactment of the CARES Act. The swift legal and tax adjustments necessary to leverage the Act's provisions for businesses required adeptness at interpreting and applying new laws under tight timelines. My work entailed dissecting the CARES Act's complex text, focusing on the Paycheck Protection Program (PPP) loan forgiveness criteria and its tax implications. Through this process, I facilitated clients in navigating these new waters effectively, ensuring they maximized their benefits while remaining compliant. Moreover, my contribution to the discussions on Proposition 19 in California further illustrates the critical nature of adapting to tax law changes.

    Proposition 19 significantly altered property tax rules, directly impacting estate planning strategies. My role involved developing preemptive legal and financial strategies for clients well ahead of the enactment date. Through personalized guidance and strategic adjustments, I assisted clients in safeguarding their assets against the adverse tax implications posed by the new law.

    These examples underscore the importance of a proactive, informed approach in managing the maze of payroll taxation and estate planning, emphasizing the value of foresight and adaptability in delivering solutions that stand up to the scrutiny of changing legislation.

    David Brillant
    David BrillantFounder, Brillant Law Firm

    Subscribe to Government Tax Newsletters

    I suggest signing up for government newsletters. A simple way to keep track of tax law updates is to have newsletters sent straight to your email. This way, you don't have to search for information or go through websites. However, not every state has a subscription newsletter.

    If a state doesn't have a newsletter, it's a good idea to bookmark their tax webpage for quick access. Also, set a reminder to visit the state's website regularly, maybe every month or quarter.

    Another straightforward method to keep up with tax law changes in different states is to check if they have official social media accounts. If a state posts updates or information regularly, follow their social media pages. The IRS also offers several ways to stay updated on federal tax laws, including newsletters meant for tax professionals, social media accounts, press releases, and the QuickAlerts service for e-file updates.

    Michael E. Farah
    Michael E. FarahFounder and Managing Attorney, The Farah Law Firm, P.C.